Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours 6.40 pounds 0.40 hours Direct materials Direct labor Standard Price or Rate $ 3.00 per pound $11.00 per hour Standard Cost $19.20 $ 4.40 During the most recent month, the following activity was recorded: a. Twelve thousand four hundred pounds of material were purchased at a cost of $2.90 per pound. b. The company produced only 1,240 units, using 11,160 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 596 hours of direct labor time were recorded at a total labor cost of $7,152. Required: Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) Materials price variance Materials quantity variance
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
